Pakistan says debt profile more sustainable after $500 million Eurobond repayment
ISLAMABAD: Pakistan’s government said on Wednesday the country has developed a more sustainable debt profile and is now in a better position to borrow on competitive terms, after repaying a $500 million Eurobond issued a decade ago that matured on Sept. 30.
The South Asian nation faced a prolonged economic crisis in recent years that pushed it to the verge of a sovereign debt default in mid-2023, when foreign exchange reserves fell to critically low levels. To stabilize its position, Islamabad secured financial assistance from friendly nations alongside the International Monetary Fund (IMF).
Since then, Pakistan has implemented stringent economic reforms under IMF guidance, gradually improving macroeconomic indicators, which global credit rating agencies have also acknowledged.
“Pakistan has successfully repaid its $500mn International Bond (Eurobond) due on 30 Sep 2025 — as scheduled, in line with all its obligations,” Khurram Schehzad, adviser to the finance minister, said in a post on X, formerly Twitter.
